Correlation Between SNDL and Uber Technologies
Can any of the company-specific risk be diversified away by investing in both SNDL and Uber Technologies at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining SNDL and Uber Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SNDL Inc and Uber Technologies, you can compare the effects of market volatilities on SNDL and Uber Technologies and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in SNDL with a short position of Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of SNDL and Uber Technologies.
Diversification Opportunities for SNDL and Uber Technologies
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between SNDL and Uber is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding SNDL Inc and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies and SNDL is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on SNDL Inc are associated (or correlated) with Uber Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uber Technologies has no effect on the direction of SNDL i.e., SNDL and Uber Technologies go up and down completely randomly.
Pair Corralation between SNDL and Uber Technologies
Given the investment horizon of 90 days SNDL Inc is expected to under-perform the Uber Technologies. In addition to that, SNDL is 1.54 times more volatile than Uber Technologies. It trades about -0.11 of its total potential returns per unit of risk. Uber Technologies is currently generating about -0.12 per unit of volatility. If you would invest 7,769 in Uber Technologies on August 28, 2024 and sell it today you would lose (613.00) from holding Uber Technologies or give up 7.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SNDL Inc vs. Uber Technologies
Performance |
| Timeline |
| SNDL Inc |
| Uber Technologies |
SNDL and Uber Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SNDL and Uber Technologies
The main advantage of trading using opposite SNDL and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SNDL position performs unexpectedly, Uber Technologies can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Uber Technologies will offset losses from the drop in Uber Technologies' long position.The idea behind SNDL Inc and Uber Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Uber Technologies vs. Kingsoft Cloud Holdings | Uber Technologies vs. AMTD Digital | Uber Technologies vs. Zoom Video Communications | Uber Technologies vs. Snowflake |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |